General Investing for Retirement
30AnvZ28
Posts: 1,619
Ok... First, Im not looking at coins as a huge retirement investment. (I do feel its an option though). Im 21 years old, and from the way Im seeing things... I know I need to start investing now. What are the best places to stick small amounts of money ( $10,000) for the best gains??? Obviously thats where I am going to be starting, so thats what I am interested in now.
0
Comments
Will
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
But I like investment topics, and I am glad that you are starting early. There is a Fidelity mutual fund called the Four-in-One Index (FFNOX). It invests 55% in the S&P 500, 15% in the extended market index (Willshire 4500), 15% in an intermational stock index, and 15% in the total bond market index. You get instant diversification with almost all of the gains from the S&P 500 (sometimes more) with reduced volatility, very low expenses, significant diversification, and automatic rebalancing. IMO, it is the perfect core fund for a retirement portfolio.
<< <i>This is OT!
But I like investment topics, and I am glad that you are starting early. There is a Fidelity mutual fund called the Four-in-One Index (FFNOX). It invests 55% in the S&P 500, 15% in the extended market index (Willshire 4500), 15% in an intermational stock index, and 15% in the total bond market index. You get instant diversification with almost all of the gains from the S&P 500 (sometimes more) with reduced volatility, very low expenses, significant diversification, and automatic rebalancing. IMO, it is the perfect core fund for a retirement portfolio.
how do i get started with that???
I bought them up untill 3 years ago.
I will be able to retire and live off them only if they stay or go up in price.
Coins are not a good place to invest.
Kranky's idea about Vanguard is a good thought.
At a young age I put quite a bit into coins and have done well.
That said, I would have been better off using something like Vanguard.
If you must invest in coins, buy nice quality key dates and plan to hold
for many years. Wish you the best either way.
Fidelity.com
The coin does not come with the account.
<< <i>how do i get started with that???
Fidelity.com
The coin does not come with the account.
awesome... a quick search kinda ran me in circles... and I want to do some research before I dump money. Thanks for the link!!!
Buy 250 of the 2005 Silver Proof Sets
My posts viewed
since 8/1/6
Good ideas here ... since it sounds like you want to do your homework and start now ... you will probably be very fortunate.
Like RYK, I like investment topics as well, even if they are OT.
Coins should not be, per se, an investment. However, it's hard to argue with the returns that studious collectors continue to post when their time horizon is long-term and their passion runs deep.
Want to add a few coins. Hey, that's okay. Study up. Take your time. Learn as much as you can before you even buy one coin. Think about the base of the hobby, and buy a coin or two (or a few) for safe keeping. Better-date reasonably high-quality collector coins from classic series with good eye appeal and original surfaces usually fare pretty well ... at least they generally hold their value. However ... and IMPORTANT in my opinion ... I would suggest that you not put more than 20% of that money in coins. I would suggest less, but purchasing three to seven well selected $300. to $700. coins over the next year might be a worthwhile goal if you were willing to hang on to them.
On the more investment side ... low cost index funds are a GREAT way to invest for your core portfolio. You might want to try this group as well for a more actively managed, low fee structure, core mutual fund. a core fund. They've done well as one of the core mutuals in my portfolio. Certainly there are any others.
Many solid funds have only a 1000. to 2500. minimum deposit. After opening up in a fund or two, then I would suggest you dollar cost your money in. Set aside so much a month or a quarter and be deligent. It's hard to argue with dollar cost averaging and the power of compounding over any horizon longer than 5 years. Even over the bear market cycle, some of us did pretty well being deligent and careful.
Deligent, studious, careful ... patient. Stick to those and I would think your future will be bright!
Just my thoughts since I can't sleep.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
<< <i>You have your whole life to worry about money. I think you should take the 10K and go backpacking in europe next summer. Go to Italy and see a Michaelangelo in person, eat some fish and chips in London, get laid on a Greek island by some Sweedish cutie, etc. etc. When I was about your age my best friend lost his job and went to Europe. He invited me and I decided to stay home and work. I've always regretted it. I would have had a blast. >>
I agree with TheNumish. "Invest" the money in life experiences, save a little (like $2000) for a rainy day. You'll have a much richer and more rewarding life for it. You are only 21 once. The trips you take at that age will return far more to you than compound interest. You will broaden your horizons, perhaps meet the love of your life, or have stories to tell to woo her when you do. You have a lifetime to earn, save and invest. If you already have $10,000 cash, no debt, you are better off than 95% of 21 year old Americans and 99.8% of people around the world. As the old joke goes, spend your fortune on wine, women and song, and squander the rest
If you are serious about investing, a coin board is not a good place to learn about it. Diversification is the keystone for long term investing. In my opinion, coins and hard assets would get maybe a 3% asset allocation in a diversified portfolio. The disclaimer, "past results do not guarantee future returns." Coins that have appreciated in the last 40 years may not do anything in the next 40. Some prime examples are proof set "investors" who believed their sets would go up as much as the early sets. Another example were uncirculated roll collectors. Another example are people with certain key-date Morgans when the government released all their coins and many lost 80% of their value.
A LOT can happen before you retire. You might retire at 50, or you might love your job so much that you work until you are 80 or 150. The economy could collapse. The government could fall. Replication and forgeries might become close to perfect making some coins worth only melt value. Catacylsmic economic events haven't really occurred in the United States since the great depression (1930s) so few adults you talk to or post on the board even will be able to recount them. The future is uncertain and full of great opportunities.
So if you are asking for advice, enjoy life, invest the money in experiences, especially travel. I know this is probably sacrilege here, but some nice new clothes and a nicer car might be on the list if travel sounds uninteresting. Again, enjoy life. 21 is not an age to "worry" about retirement. Max out your IRA contributions (Roth IRA if you are in a low bracket) and 401k and your retirement will take care of itself.
It is also good to travel. I'll never forget my experience hitch hiking all across the US and Canada when I was your age. It is also fun to collect some coins, especially if you keep them during any periods of time when your interests may drift elsewhere.
Goodluck
jdimmick;Gerard;wondercoin;claychaser;agentjim007;CCC2010;guitarwes;TAMU15;Zubie;mariner67;segoja;Smittys;kaz;CARDSANDCOINS;FadeToBlack;
jrt103;tizofthe;bronze6827;mkman;Scootersdad;AllCoinsRule;coindeuce;dmarks;piecesofme; and many more
<< <i>Use the money to pursue your dreams, what are you most interested in? Are you finished with college? Is there a business you would like to start? I started my own hvac company in my early 20s, its been a great 15 years so far. >>
I am in the military, and I have been all across the world... Rome, Italy... Spain, UAE, Dubai, Korea, Japan, Okinawa, ect... you get the point...
As far as college... its paid for, im taking over a business in Hilton Head Island when I get out... so thats all lined up. I basically have everything I want, and everything else is paid for... Ive worked hard for what I have though... but I want to make sure when I decide to call it quits... I have enough money to do that.
<< <i>Traveled the world, 21yrs old, Hilton Head, everthing is paid for no problems with college. Sounds like a great life.....
Yes, the right place at the right time (a lot of luck) a guy who is tired of working, and a close term to being out of the military. Its going to be tough taking the business over, but if I get it, and keep it rolling, im going to be sitting pretty. Im very fortuniate, and Ive learned the value of a $1 early, which has helped. The GI bill and a scholarship I got before joining the Marines will pay for college.
<< <i>
<< <i>You have your whole life to worry about money. I think you should take the 10K and go backpacking in europe next summer. Go to Italy and see a Michaelangelo in person, eat some fish and chips in London, get laid on a Greek island by some Sweedish cutie, etc. etc. When I was about your age my best friend lost his job and went to Europe. He invited me and I decided to stay home and work. I've always regretted it. I would have had a blast. >>
I agree with TheNumish. "Invest" the money in life experiences, save a little (like $2000) for a rainy day. You'll have a much richer and more rewarding life for it. You are only 21 once. The trips you take at that age will return far more to you than compound interest. You will broaden your horizons, perhaps meet the love of your life, or have stories to tell to woo her when you do. You have a lifetime to earn, save and invest. If you already have $10,000 cash, no debt, you are better off than 95% of 21 year old Americans and 99.8% of people around the world. As the old joke goes, spend your fortune on wine, women and song, and squander the rest
If you are serious about investing, a coin board is not a good place to learn about it. Diversification is the keystone for long term investing. In my opinion, coins and hard assets would get maybe a 3% asset allocation in a diversified portfolio. The disclaimer, "past results do not guarantee future returns." Coins that have appreciated in the last 40 years may not do anything in the next 40. Some prime examples are proof set "investors" who believed their sets would go up as much as the early sets. Another example were uncirculated roll collectors. Another example are people with certain key-date Morgans when the government released all their coins and many lost 80% of their value.
A LOT can happen before you retire. You might retire at 50, or you might love your job so much that you work until you are 80 or 150. The economy could collapse. The government could fall. Replication and forgeries might become close to perfect making some coins worth only melt value. Catacylsmic economic events haven't really occurred in the United States since the great depression (1930s) so few adults you talk to or post on the board even will be able to recount them. The future is uncertain and full of great opportunities.
So if you are asking for advice, enjoy life, invest the money in experiences, especially travel. I know this is probably sacrilege here, but some nice new clothes and a nicer car might be on the list if travel sounds uninteresting. Again, enjoy life. 21 is not an age to "worry" about retirement. Max out your IRA contributions (Roth IRA if you are in a low bracket) and 401k and your retirement will take care of itself. >>
Thanks for the words. I do have a girl that I love with all of my heart (yes, im 21, dont haze me, it may or may not work) and I have a car that I also picked up 4 years ahead of schedule (I saw a 1997 Camaro 30th Anniversary Edition one day, and wanted one so bad... and with 957 made... I knew it would be tough... so I set up a savings plan... then found one at a used car lot, and the dealer didnt know it was a collectors edition... so I made off with it) For a 21 year old I am living the life. I have an amazing car, amazing girl friend, grandparents that no one can imagine, over $40K in coins that I have purchased, 2 years of college down, 4 years in the Marines, ect.
I also know a coin board isnt a great place to learn about investing... but the wisdom and knowledge of the older folk (those who have retired and who are close to it, also, no offense) on investing and where to start is something no one else can give me. Im not "worrying" about retirement... just planning. Setting aside $200 a month isnt hard... but adds up over time... so If I do this now... and by the time im 30 or so, having 30K in the bank because I "planned" is worth it. Thanks for the words... I do have a couple places I am going to make a trip to soon though. On the way home from Japan, I will be in Wake Isl, and Hawaii for a few days each... but I also want to see Australia, Alaska, and the Galapagos Islands. Those are in the plans... and another trip to the Bahamas.
My grandma taught me the vaule of a $1, and has helped me out through the rough times, but has forced me to pay for everything myself... which has been a lot better then just handing things down. The bank wouldnt give me a loan for my car... (It was too much of a high performance vehicle and would require to much maintenance) so her and my grandpa drove down to SC from OH and paid for it... but religiously on the 1st of every month, if she hasnt received my payment... shes on my butt like white on rice. That has taught me to value everything I have. For taking care of them the last 2 years I was in High School, and taking care of the yard, house, boat, vehicles, ect... they gave me the boat as payment... I didnt ask for it... my grandpa said I deserved it. Once I get out, and take over the business and get on my feet, im going to drive home for a week every month to take care of them, mow the yard, go get groceries, fill the water softener tank, ect... Hopefully things work out!
<< <i>
<< <i>Use the money to pursue your dreams, what are you most interested in? Are you finished with college? Is there a business you would like to start? I started my own hvac company in my early 20s, its been a great 15 years so far. >>
I am in the military, and I have been all across the world... Rome, Italy... Spain, UAE, Dubai, Korea, Japan, Okinawa, ect... you get the point...
As far as college... its paid for, im taking over a business in Hilton Head Island when I get out... so thats all lined up. I basically have everything I want, and everything else is paid for... Ive worked hard for what I have though... but I want to make sure when I decide to call it quits... I have enough money to do that. >>
That changes everything. With that background, I suggest the following: give 10% to your favorite charity. You are blessed with more than enough--sharing some with the less fortunate will return to you a thousand-fold over your lifetime. If you don't have a favorite, there are plenty of worthy causes that you can learn about, both local and global. Spend 10% on something fun, like a trip, a nice watch, a decent suit of clothes, some nice coins, whatever. Save the rest in some diversified no-load funds or exchange-traded-funds. Plenty of them have lower minimums. Vanguard is one place to start.
<< <i>
<< <i>
<< <i>Use the money to pursue your dreams, what are you most interested in? Are you finished with college? Is there a business you would like to start? I started my own hvac company in my early 20s, its been a great 15 years so far. >>
I am in the military, and I have been all across the world... Rome, Italy... Spain, UAE, Dubai, Korea, Japan, Okinawa, ect... you get the point...
As far as college... its paid for, im taking over a business in Hilton Head Island when I get out... so thats all lined up. I basically have everything I want, and everything else is paid for... Ive worked hard for what I have though... but I want to make sure when I decide to call it quits... I have enough money to do that. >>
That changes everything. With that background, I suggest the following: give 10% to your favorite charity. You are blessed with more than enough--sharing some with the less fortunate will return to you a thousand-fold over your lifetime. If you don't have a favorite, there are plenty of worthy causes that you can learn about, both local and global. Spend 10% on something fun, like a trip, a nice watch, a decent suit of clothes, some nice coins, whatever. Save the rest in some diversified no-load funds or exchange-traded-funds. Plenty of them have lower minimums. Vanguard is one place to start. >>
Right now I give 2% of my pay (not much, but a little) to a charity, and I honestly havent thought about giving to a charity aside from that... I may look into that. My uncle had downsyndrom, so I would feel partial to that... I hadnt thought of doing something like that though... I might consider the Masons also... growing up with my grandparents and my grandpa being a mason, I have seen what they do for each other... but with todays "youth" (15-25) I dont see the numbers of orginizations like that staying up... which is sad.
Go enjoy life Marine. You have earned it. This Coastie appreciates and honors your service and dedication to the country and uniform.
LT Craig R. Petersen, USCG
Looking for Denmark 1874 20-Kroner. Please offer.
<< <i>Being an active duty guy myself, I got out after my enlistment and went to college. I had an opportunity to go to Europe with a girlie (bad mistake) but still had the time of my life. I don't regret the money I spent or the things I could have done with my money. There is a different feeling going to a country when it isn't work related or you are hanging out with your fellow Jarheads. A diversified fund is the way to go. I myself like Spyders which is a stock but follows the S&P 500. Check out www.motleyfool.com. You will find all kinds of info there. At $50K, you don't need a broker. You can do it yourself and save a bundle. You are so far ahead of the game. Count your blessings. DO the Corp a favor and pass on some of the things you have done to your fellow Marines. One may actually listen and come out ahead in life.
Go enjoy life Marine. You have earned it. This Coastie appreciates and honors your service and dedication to the country and uniform.
LT Craig R. Petersen, USCG >>
Im sure visiting a country "off duty" is like no other. I met a guy in Rome, who simply traveled... he would fly to a country, get a job doing whatever, just to survive... once he got tired of being there... he would buy a one way ticket somewhere else... and do it all over again... some of his stories were amazing. Ive tried to talk to some of them... but its all beer and a$$ to them... which is fine. I like to party, but I know theres more to life then that. I have gotten one other one out of about $9000 in debt... (not yet, but hes on a plan, which he wasnt before) so hopefully he will keep on track... I cant make his decisions... I just hope he sees the light. I bet being in Europe for that long of a time would have been amazing...